Earlier today on CNBC, LeBron James asked Warren Buffett for some investment advice, and Buffett’s advice was quite simple: “… just make monthly investments in a low-cost index fund.”
No need to worry about PE ratios or large management fees, no investments in REITs, CDOs, derivatives, or junk bonds (I don’t know what some of that stuff is, but they sound complicated), and certainly no need for a Masters degree in computational finance. (my alma mater!)
Just good, simple advice.
It made me wonder what else we unnecessarily complicate in our lives. Our health, our relationships, our goals?
When you think about it, life is pretty simple; eat less and exercise more, be nice, and try your best.
Einstein said it the best, “Everything should be made as simple as possible, but not simpler.”
But Thoreau said it even simpler, “Simplify, simplify.”
Let’s hope that King James takes Buffett’s words of advice to heart, otherwise he could end up like a lot of former NBA players, living in a van, down by Walden Pond.